Agents have voiced their support for RE/MAX’s Geoff Baldwin, stating that the new NCCP Act will adversely impact both buyers and sellers.
Earlier this month, RE/MAX’s Western Australian managing director Mr Baldwin said the new legislation was a "sham" and would negatively impact any borrower over the age of 35.
Under the NCCP Act, borrowers will have to prove they have the capacity to pay their loan back in full before retirement without selling their owner occupied residence.
Real Estate Business was overwhelmed by responses from agents supporting Mr Baldwin’s criticisms of the NCCP Act.
Realty Executive agent Brian Parkes said the new laws would stop borrowers from finding their dream property.
“Freedom of the individual to arrange his or her finances to suit their circumstances is severely restricted by these new laws,” Mr Parkes said.
“People within 15 years of retirement age are directly disadvantaged – and this will put more stress on government coffers and the economy.”
Mr Parkes comments were largely echoed by Robert Parker Homes executive Robert Parker.
Mr Parker told Real Estate Business that the new laws had already cost him a potential sale.
“Offer and acceptance had been made however the lending institution rejected the application due to payment concerns.”